There is a saying that Dongting Lake is the most beautiful
lake and Yueyang Tower is the most magnificent structure in
Southern China. Perhaps because of this, Dongting Lake is
one of the most popular tourist destinations in Hunan Province,
with millions of tourists visiting the lake every year. The
lake also supplies water to a water treatment plant in Yueyang
City, which is one of two plants in the city in which Cheung
Kong Infrastructure Holdings Limited (CKI) has signed contracts
to invest.

Dongting Lake is one of the most famous lakes in China. Yueyang
Tower - which was built on the shores of the lake approximately
1,700 years ago during the era of the Three Kingdoms - is
the only one of three famous architectural pieces in Southern
China which remains in its original, pristine condition. The
beauty of Dongting Lake and Yueyang Tower has been immortalized
by poets and intellectuals throughout Chinese history, and
Fan Zhoungyan's "Scripture of Yueyang Tower" is
one of the most renowned tributes.

In addition to Dongting Lake, another source of water supply
for the two plants is the Pieshan Reservoir. CKI has a 49%
interest in the RMB 150 million projects, for a total CKI
investment of RMB 73.5 million. CKI's joint venture partner
in this project is the only local water supply company in
Yueyang City, and the joint venture period will last for 18
years.

The two plants represent the only water processing facilities
in Yueyang City. Each of the two plants has a water processing
capacity of 200,000 tonnes per day, for a total processing
capacity of 400,000 tonnes per day. Both plants are currently
operational - one has been in operation for over ten years,
while the other became operational in 1994. The two plants
employ the latest in water processing technology, with computerized
systems imported from the United States.

Located in the Northeast section of the province, Yueyang
is one of the largest cities in Hunan. Yueyang is rich in
cultural and historical significance, and is also the only
major city on the banks of the Yangtze River in Hunan - which
makes it vital to the province's economy. With a population
of about 5 million, the city's major industries include petrochemicals,
food processing, textiles and tourism.

Mr H L Kam, Group Managing Director of Cheung Kong Infrastructure
Holdings Ltd., explained, "These two water plants in
Yueyang represent CKI's first batch of water plants in Hunan
Province and the Central/Western region - marking a new milestone
for the diversification of our investments in the area."

Mr Kam continued, "Each of our projects in the Central/Western
region has a unique historical, cultural or geographical significance.
Water for these plants in Yueyang is supplied by local lakes
and reservoirs. The Changsha Wujialing and Wuyilu Bridges,
also in Hunan province, cross the Xiangjiang river, which
runs through the provincial capital. The Qinyang power plants
in Henan Province supplies primarily to aluminum producers
- a resource rich in that province. The Zhumadian sections
of National Highway 107 in Henan Province are located at the
site of a historical horse changing station, which is now
a major transportation hub. The Huang Jin Bridge in Hubei
Province is set to become a major means of transportation
for traffic through the Wuhan region. Finally, the Yichang
Yiling Yangtze Bridge, also in Hubei, serves as a transportation
hub for the construction of the Three Gorges Dam."

"We have been strategically building our portfolio of
infrastructure investments in China's Central/Western region,
as we believe in the economic potential of this area of the
country. We will continue to follow our clustering strategy
to further develop our portfolio in this region - whether
these projects are in our core businesses of energy, infrastructure
materials and transportation, or in new business areas such
as water," concluded Mr Kam.